SKU Optimization - Identification

SKU Optimization is never easy for any company. Usually, it is only considered when Supply Chain succumbs to the weight of a bloated portfolio, and then it often requires a large “spring cleaning” event. The best organizations routinely review their portfolios and reach consensus with input from all stakeholders.

This app handles the calculations and provides the forum to review the quantitative SKU performance with the qualitative insights from Marketing, Supply Chain, Sales, and the Independent Distributors. By showing the right stakeholders the right metrics on each SKU, recommendations can be made in less time and with more confidence. This allows organizations to make final decisions with all stakeholders included. The resulting decisions can be a simple retain/retire or this app enables a regionalization approach to SKU optimization/retirement.

Watch this for a demo on how this app coordinates optimization decisions effectively.

Monitor how your portfolio’s top metrics would be impacted as each SKU is selected to be reviewed.

See how final decisions effect each region’s performance and how close each region is to meeting the “Tail Analysis” goal. Export key results to PowerPoint to send to upper management.

Decide whether or not to review a SKU with all the information you need in one page. Model set up with standardized reason codes to document and clarify each decision.

Consolidate key information, with controlled access, to review before submitting their recommendations for only the “SKUs Under Review” in a clearly-defined interface.

Throughout the process, review all your SKUs to find any outliers by using conditional formatting across KPIs and metrics.

Select the bottom percent of overall volume to consider as the “tail” and set a goal for how many SKUs should be left in it after the process is complete.

Visualize how the portfolio’s volume “tail” would change as each decision to review is made.

Features

“Review and Recommend” Workflow Enabled

Stakeholders can be assigned to specific roles, products, or responsibilities driving their tasks and interface within the app. Metrics can be automatically filtered down to what matters most to them. This facilitates their informed recommendation with expediency. Teams can include different roles and functions, such as overall supply chain teams, regional sales teams, specialized distributors, and more.

Usability

User interface design focuses on providing the correct amount of information on each screen and exact instructions for users to quickly understand and complete deliverables. Color-coded formatting alerts users whenever a section still needs to be filled out. Dashboards can be easily adjusted to show the metrics that are important to specific organizations and teams. Uploaded data can be further analyzed to show KPIs, trends, and performance categories so stakeholders can see the right amount of insights before recommending to retain or to retire.

Quantitative and Qualitative

The model is set up for the easy import of connection to sources providing data for metrics such as volumes, sales, profits, and write-offs. These are then used to calculate the SKUs relative performance and portfolio impact analysis. At each stage the contributing stakeholder will provide their voice and reasons for the decisions to retain or retire.

Flag Process for Final Decision Confirmation

After decisions are made, an optional process can be initiated to see if any stakeholders need to flag a decision because of major concerns in their area.

Structured Workflow for Entire SKU Identification Process

The SKU Optimization Identification app is set up to facilitate the process of selecting underperforming SKUs to review, showing these SKUs to key stakeholders, getting their input, making final decisions based on their input, and allowing for teams to flag final decisions that would create serious problems within their domain.

Configurable User Access

The project manager can create and assign roles to users in different departments and regions for internal and external controlled access. This results in getting information from and sending reports to the right people with security and ease.

Information

App stats

Modules

14

Roles

8

Formulas

123

Reports

10

Complexity

Intermediate

Barkawi

Barkawi helps clients improve the performance of their supply chain or aftersales service operations, by addressing four key areas: people, processes, strategies, and technology. Barkawi’s strength lies in our expertise in the systems, data analytics and science of supply chain functions combined with our strategic partnerships with best-in-class solutions providers. In addition to technology transformations, Barkawi also delivers a range of programs focused on driving operational excellence. With headquarters in Munich, Germany and offices in North America, Europe and Asia, Barkawi can support small tactical projects to large scale initiatives.